"Although Wells’ seven-year, $126 million contract has been looked at as an albatross for the Angels, the deal could actually be quite beneficial for the Yankees financially. Despite Wells’ bloated salary, his arrival may help the Yankees achieve their goal of staying below the luxury tax threshold next year.

The Angels are sending the Yankees roughly $29 million of the $42 million still owed to Wells, who will earn $21 million in each of the next two seasons.
That means the Yankees will pay Wells $13 million over the next two years, but some fancy accounting could actually make it so the three-time All-Star doesn’t count against the team’s luxury tax payroll figure at all in 2014 — or even better, earn them a credit.

Wells’ seven-year, $126 million contract carries an average annual value of $18 million, which is the figure used by MLB for luxury tax purposes. That figure decreases based on the money being paid by another team, so if the Yankees were to split the $29 million evenly, it would leave them with a $3.5 million tax figure on Wells’ deal in each of the two seasons.

But according to a league source, the Yankees are expected to pay Wells between $10 million and $12 million in 2013, leaving the Angels to pick up the other $9 million-$11 million."

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AKA Mantlemurcer (MM). I'm Married to Mrs. MM, who is also my editor/proofreader and biggest fan. I became a Yankees fan in the late 1960's and attended my 1st game at Yankee Stadium in 1970. I hope to bring you a unique perspective about the Yankees, past, present, and future.